JUNO BEACH, Fla. – With growing support for clean and renewable wind energy and the need for new sources of power generation to meet increasing demand, FPL Energy, LLC, a subsidiary of FPL Group, Inc. (NYSE: FPL) and the U.S. leader in wind energy development and operations, announced today an aggressive goal to add between 8,000 and 10,000 megawatts of new wind to its portfolio by the end of 2012.
To achieve its goal, FPL Energy plans to add at least 2,000 megawatts of new wind generation to its portfolio in the 2007/2008 timeframe and 1,500 to 2,000 megawatts per year from 2009 through 2012.
The foundation of FPL Energy’s growth plan is a pipeline of wind projects representing more than 14,000 megawatts in various stages of development and more than one million acres of land under its control across the U.S. FPL Energy continues an active prospecting program designed to add significantly to its already robust pipeline. In addition to its development pipeline, FPL Energy, through its subsidiaries, currently has more than 1,000 megawatts of new wind projects under construction in Texas, Colorado, Iowa and North Dakota; all are expected to reach commercial operation by the end of this year.
“With demand for energy continuing to increase, we believe wind power can have a positive impact on diversifying our energy supply and improving our environment,” said Mitch Davidson, president of FPL Energy. “We need more economic, reliable and domestic sources of electricity to operate our homes and businesses and wind energy is an important and growing part of our energy supply. As the largest owner and operator of wind and solar power in the nation, the goal we announced today is part of our ongoing commitment to clean energy generation.”
FPL Energy has a long and successful track record in wind energy development and operation. From 2000 through 2006, FPL Energy added more than 3,500 megawatts to its wind portfolio. No company in the world has added more wind capacity through new development than FPL Energy.
In 2006 FPL Energy installed about one-third of all of the new wind energy added in the U.S. In addition, FPL Energy’s development activities in 2006 helped Texas supplant historic leader California as the top state in cumulative wind power capacity, according to the American Wind Energy Association (AWEA). The Horse Hollow and Red Canyon wind projects alone represent an investment by FPL Energy subsidiaries of more than $1 billion in Texas.
“Continuation of the tremendous growth we’ve seen in wind energy is not without its challenges,” Davidson added. “Timely extension of the renewable energy production tax credit along with addressing ongoing transmission and interconnection challenges is vital to our ability to meet these goals and the long-term viability of the wind generation industry.”
FPL Energy is a competitive energy supplier utilizing clean fuels such as natural gas, wind, solar, hydro and nuclear to generate electricity. It is the nation’s leader in wind energy, with 49 projects currently in operation in 15 states. It is a subsidiary of FPL Group, one of the nation's largest providers of electricity-related services with annual revenues of nearly $16 billion. FPL Group's principal subsidiary is Florida Power & Light Company, one of the nation's largest electric utilities, serving 4.4 million customer accounts in Florida. Additional information is available on the Internet at www.FPLEnergy.com, www.FPLGroup.com and www.FPL.com.
Cautionary Statements And Risk Factors That May Affect Future Results
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Reform Act), FPL Group, Inc. (FPL Group) is hereby providing cautionary statements identifying important factors that could cause FPL Group's actual results to differ materially from those projected in forward-looking statements (as such term is defined in the Reform Act) made by or on behalf of FPL Group in this press release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as will likely result, are expected to, will continue, is anticipated, believe, could, estimated, may, plan, potential, projection, target, outlook) are not statements of historical facts and may be forward-looking. Forward-looking statements involve estimates, assumptions and uncertainties. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors (in addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements) that could cause FPL Group's actual results to differ materially from those contained in forward-looking statements made by or on behalf of FPL Group.
Any forward-looking statement speaks only as of the date on which such statement is made, and FPL Group undertakes no obligation to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date on which such statement is made. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.
The following are some important factors that could have a significant impact on FPL Group's operations and financial results, and could cause FPL Group's actual results or outcomes to differ materially from those discussed in the forward-looking statements:
FPL Group is subject to complex laws and regulations and to changes in laws and regulations as well as changing governmental policies and regulatory actions, including initiatives regarding deregulation and restructuring of the energy industry and environmental matters. These factors may have a negative impact on the business and results of operations of FPL Group.
The construction, development, operation and maintenance of power generation facilities, including wind energy facilities, involve significant risks that could adversely affect the results of operations and financial condition of FPL Group. Should construction or capital improvement efforts be unsuccessful, the results of operations and financial condition of FPL Group could be adversely affected.
FPL Energy’s wind energy business is subject to risks, many of which are beyond the control of FPL Group, that may reduce the revenues and adversely impact the results of operations and financial condition of FPL Group. In addition to the risks previously identified, these risks include equipment availability, transmission constraints, competition from new sources of generation, excess generation capacity and demand for power. There can be significant volatility in market prices for electricity, and there are other financial, counterparty and market risks that are beyond the control of FPL Energy. FPL Energy's inability or failure to effectively hedge its assets or positions against changes in commodity prices, interest rates, counterparty credit risk or other risk measures could significantly impair FPL Group's future financial results. In keeping with industry trends, a portion of FPL Energy's power generation facilities operate wholly or partially without long-term power purchase agreements. As a result, power from these facilities is sold on the spot market or on a short-term contractual basis, which may affect the volatility of FPL Group's financial results. In addition, FPL Energy's business depends upon transmission facilities owned and operated by others; if transmission is disrupted or capacity is inadequate or unavailable, FPL Energy's ability to sell and deliver its wholesale power may be limited.
Because FPL Group relies on access to capital markets, the inability to maintain current credit ratings and access capital markets on favorable terms may limit the ability of FPL Group and FPL Energy to grow their businesses and would likely increase interest costs.
Weather affects FPL Group's results of operations.
The risks described herein and those risks detailed in the Company's periodic reports filed with the Securities and Exchange Commission (``SEC'') are not the only risks facing FPL Group. Additional risks and uncertainties not currently known to FPL Group, or that are currently deemed to be immaterial, also may materially adversely affect FPL Group's business, financial condition and/or future operating results. . Investors are encouraged to access FPL Group’s periodic reports filed with the SEC for financial and business information regarding FPL Group at http://www.fplgroup.com